Big Ten switches ticket reservation vendor after lawsuit

The Big Ten Conference will sell options on tickets to its football championship game this fall for the fifth straight year. But it will be under a different name in the wake of federal fraud charges against the Lake Forest vendor it has used since 2012.

New York-based startup ShooWin will launch a new options market for about 2,200 tickets in various sections to the Dec. 3 title game in Indianapolis.

It will work the same way the Big Ten's TeamTix platform has functioned for the past four years, letting fans reserve face-value tickets to the game contingent on their team advancing to play in it.

If a fan buys an option (most start at $10) on a team that ultimately qualifies for the game, they are obligated to buy the face-value ticket. Historically, face-value is far cheaper than what fans pay on the secondary market for a game that usually sells out. If the fan's team doesn't make it, they lose only their reservation fee.

Since 2012, the Big Ten has worked with Lake Forest-based Forward Market Media, whose TeamTix product has also been used for high-demand sporting events with undetermined teams like the College Football Playoff and other major bowl games.

It's an innovative concept that allows the Big Ten and other major game rights-holders to pull in millions from reservation fees. They're squeezing more ticket revenue out of high-demand situations before the games even occur, helping them cope with ticket holders turning big profits by re-selling their tickets for far above face-value on sites like StubHub or Craiglist.

But that took a turn in May when the Securities and Exchange Commission filed a complaint against two FMM executives, CEO Rick Harmon and CFO John Kaptrosky. The SEC alleged that they and a Dallas-based investment advisor were siphoning money from investors and running a Ponzi-like scheme.

A federal judge froze FMM's assets last month and appointed a receiver to oversee the assets of the company.

In a July 13 report, the receiver noted that ShooWin last December signed a licensing deal allowing it to use FMM's technology for 25 years in exchange for royalties and a financial stake in the company. ShooWin founder Brisa Trinchero had been a consultant for FMM, according to the report.

Now, ShooWin is aiming to keep all of the FMM clients that have used the TeamTix technology on board moving forward, trying to distance itself publicly from any association with FMM, the receiver's report said.

Big Ten Deputy Commissioner Brad Traviolia said the conference is "very comfortable" with ShooWin's management., which is why the Big Ten and ShooWin this week began promoting the title game market.

“We love that ShooWin was created by fellow Real Fans, including some Big Ten fans, which means they understand that fans want to enjoy the process of getting those seats and creating life-long memories,” Traviolia said in a statement.

Face value on the tickets in play on the Big Ten title game ShooWin market range from $50 to $190.